Given the intensification of the legal dispute between the Ripple and the US Securities and Exchange Commission (SEC) recently, the company's chief legal officer, Stuart Alderoty, shared comments in which he clarified some misunderstandings in the ongoing case. Information circulated in the cryptocurrency community that there would be a major development in the Ripple case this week.
The clarification came after some members of the crypto community on platform X shared news regarding the final pre-trial conference in the process that was supposed to be held this week, highlighting that it would be very important for the case.
However, Alderoty highlighted this final pre-trial conference will not take place due to the regulator dropping charges against the company's CEO. Ripple, Brad Garlinghouse, and founder, Chris Larsen.
In his statement, the company's legal director highlighted the next path forward in the legal dispute, highlighting that the next important date in the process is that Ripple must send its response to the company's penalty request. SEC until April 22nd. The regulator will have until May 6 to provide a response.
“Seeing some confusion about the next steps in the SEC vs. Ripple. To clarify – Ripple will file its response to the SEC’s penalty request by April 22nd and the SEC has until May 6th to respond. There is no final pretrial conference because the SEC dismissed the charges against Brad Garlinghousee and Chris Larsen,” Alderoty wrote.
Seeing some confusion on next steps with the SEC vs. Ripple case. To clarify – Ripple will file its response to the SEC's request for penalties by April 22 and the SEC has until May 6 to respond. There is no final pretrial conference because the SEC dismissed the charges against… https://t.co/Jn5Pw5rM30
— Stuart Alderoty (@s_alderoty) April 16, 2024
Ripple vs SEC Legal Battle Intensifies with Claims from Institutional Investors
The legal clash between Ripple and the US Securities and Exchange Commission (SEC) has intensified recently. The central controversy involves accusations that Ripple discriminated against some institutional investors during sales of XRP through its On-Demand Liquidity platform. The dispute began in December 2020, with Ripple being accused of conducting a securities offering without proper registrations.
The current sticking point in the dispute is Ripple's alleged failure to disclose discounts that were offered to certain institutional investors. The SEC argues that this lack of transparency could have harmed other investors, creating an unfair advantage. However, a recent decision by the Second Circuit Court of Appeals in the Aron Govil case may have breathed new life into Ripple's defense. This decision determined that the SEC cannot force a seller to return profits if there is no proof of financial losses on the part of buyers.
